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federal_register: 2022-03212

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document_number title type abstract publication_date pub_year pub_month html_url pdf_url agency_names agency_ids excerpts regulation_id_numbers
2022-03212 Private Fund Advisers; Documentation of Registered Investment Adviser Compliance Reviews Proposed Rule The Securities and Exchange Commission (the "Commission" or the "SEC") is proposing new rules under the Investment Advisers Act of 1940 (the "Advisers Act" or the "Act"). We propose to require registered investment advisers to private funds to provide transparency to their investors regarding the full cost of investing in private funds and the performance of such private funds. We also are proposing rules that would require a registered private fund adviser to obtain an annual financial statement audit of each private fund it advises and, in connection with an adviser-led secondary transaction, a fairness opinion from an independent opinion provider. In addition, we are proposing rules that would prohibit all private fund advisers, including those that are not registered with the Commission, from engaging in certain sales practices, conflicts of interest, and compensation schemes that are contrary to the public interest and the protection of investors. All private fund advisers would also be prohibited from providing preferential treatment to certain investors in a private fund, unless the adviser discloses such treatment to other current and prospective investors. We are proposing corresponding amendments to the Advisers Act books and records rule to facilitate compliance with these proposed new rules and assist our examination staff. Finally, we are proposing amendments to the Advisers Act compliance rule, which would affect all registered investment advisers, to better enable our staff to conduct examinations. 2022-03-24 2022 3 https://www.federalregister.gov/documents/2022/03/24/2022-03212/private-fund-advisers-documentation-of-registered-investment-adviser-compliance-reviews https://www.govinfo.gov/content/pkg/FR-2022-03-24/pdf/2022-03212.pdf Securities and Exchange Commission 466 The Securities and Exchange Commission (the "Commission" or the "SEC") is proposing new rules under the Investment Advisers Act of 1940 (the "Advisers Act" or the "Act"). We propose to require registered investment advisers to private funds to provide... 3235-AN07

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